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Case study
Publication date: 20 January 2017

Daniel Diermeier, Robert J. Crawford and Charlotte Snyder

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong…

Abstract

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.

Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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Case study
Publication date: 20 January 2017

Daniel Diermeier, Robert J. Crawford and Charlotte Snyder

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong…

Abstract

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.

Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Access Restricted. View access options
Case study
Publication date: 20 January 2017

Daniel Diermeier, Robert J. Crawford and Charlotte Snyder

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong…

Abstract

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.

Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

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Book part
Publication date: 27 August 2014

Damian Tago, Henrik Andersson and Nicolas Treich

This study contributes to the understanding of the health effects of pesticides exposure and of how pesticides have been and should be regulated.

Abstract

Purpose

This study contributes to the understanding of the health effects of pesticides exposure and of how pesticides have been and should be regulated.

Design/methodology/approach

This study presents literature reviews for the period 2000–2013 on (i) the health effects of pesticides and on (ii) preference valuation of health risks related to pesticides, as well as a discussion of the role of benefit-cost analysis applied to pesticide regulatory measures.

Findings

This study indicates that the health literature has focused on individuals with direct exposure to pesticides, i.e. farmers, while the literature on preference valuation has focused on those with indirect exposure, i.e. consumers. The discussion highlights the need to clarify the rationale for regulating pesticides, the role of risk perceptions in benefit-cost analysis, and the importance of inter-disciplinary research in this area.

Originality/value

This study relates findings of different disciplines (health, economics, public policy) regarding pesticides, and identifies gaps for future research.

Details

Preference Measurement in Health
Type: Book
ISBN: 978-1-78441-029-2

Keywords

Available. Open Access. Open Access
Article
Publication date: 2 October 2024

Florian Maurer and Albrecht Fritzsche

This paper aims to explore the development of the US steel industry from the 19th to the 20th century by applying the Schumpeterian perspective on the concept of creative…

276

Abstract

Purpose

This paper aims to explore the development of the US steel industry from the 19th to the 20th century by applying the Schumpeterian perspective on the concept of creative destruction. It introduces Game Theory as a means to describe patterns of strategic situations and entrepreneurial decision-making in an emerging industry.

Design/methodology/approach

Based on a narrative literature review of Schumpeter’s concept of creative destruction, four historical case studies have been designed. These historical case studies build the basis for game-theoretically analysis and evaluation. In doing so, the authors identify games with different payoff matrices that take place while an industry emerges, reflecting different layers of creative destruction.

Findings

Emerging industries, as this paper highlights, go through several stages of development until they reach full maturity. With Schumpeter, these stages can be studied through an entrepreneurial lens, highlighting different patterns of decision-making in each respective stage. This paper adds to a better understanding of emerging industries. Furthermore, this paper provides a methodological repertoire that can also be applied to other cases as well, such as the emergence of contemporary digital industries.

Research limitations/implications

The paper provides a horizontal overview of how Game Theory can be applied to analyze industrial epochs and how the concept of creative destruction works in industry and transforms industry. It introduces Game Theory to management and business history as a sound methodological base to analyze and evaluate strategic situations and entrepreneurial decision-making.

Practical implications

The paper presents a comprehensive method to act in the different stages of an industrial epoch and how to act. The games applied in the particular layers of creative destruction give an insight into the analysis of strategic situations and strategic decision-making in the industry.

Originality/value

This paper provides a horizontal perspective on strategic games that can be used as an analysis methodology in the field of entrepreneurship and applied in contemporary industries. It connects historical cases out of the US steel industry with Schumpeter’s concept of creative destruction and Game Theory.

Details

Journal of Management History, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1348

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Book part
Publication date: 4 December 2020

Heike Bartel

Abstract

Details

Men Writing Eating Disorders: Autobiographical Writing and Illness Experience in English and German Narratives
Type: Book
ISBN: 978-1-83909-920-5

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Article
Publication date: 5 March 2018

Pernille Eskerod, Karyne Ang and Erling S. Andersen

Exploitation of project opportunities may bring more benefits than stipulated in the initial business case, and even stakeholder benefits that nobody thought of at the project…

1338

Abstract

Purpose

Exploitation of project opportunities may bring more benefits than stipulated in the initial business case, and even stakeholder benefits that nobody thought of at the project initiation. The purpose of this paper is to suggest a new research area for megaprojects, i.e. the phenomenon of project opportunity exploitation as a means to increase the project benefits.

Design/methodology/approach

This is a single case study of an infrastructure megaproject, i.e. the construction and operation of a 50+ years old American bridge. Data cover information regarding 60+ years old historical documents, newspaper articles, interviews and video-recordings.

Findings

The findings of this paper are as follows: exploiting all opportunities created by the project and increasing project benefits require involvement from many categories of stakeholders; stakeholders get more involved in exploiting the opportunities created by the project when they are proud of the project; for some of the project-related opportunities, it might take a long time before they can be exploited (and related benefits achieved); and celebrating achievements of the project stimulate stakeholders to exploit opportunities created by the project and contribute to further project benefits.

Research limitations/implications

Only few interviews were conducted. Interviewees were biased as all were very proud of the bridge. This is a single case study of a “rare species”, not representing most megaprojects.

Practical implications

To enhance project opportunity exploitation and increased benefits, the project owner (team) must continuously communicate about the project, also after project execution.

Originality/value

This study contributes to a gap within the literature on the phenomenon “project opportunity exploitation”. This is a very rich case study and of a “rare species”.

Details

International Journal of Managing Projects in Business, vol. 11 no. 1
Type: Research Article
ISSN: 1753-8378

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Article
Publication date: 1 June 2000

Paul Williams and Andrew Whitton

Reports on e‐business and its boom in the financial sector and the criteria required to meet rules laid down by the Financial Services Authority (FSA). Presents FSA requirements…

29163

Abstract

Reports on e‐business and its boom in the financial sector and the criteria required to meet rules laid down by the Financial Services Authority (FSA). Presents FSA requirements as follows, regarding “operating” in the UK: targeting UK residents; head office/egistered office located in the UK; head office/registered office located overseas but targeting UK residents (with various exceptions); computer systems physically based in the UK. Closes by saying the e‐business market for financial services is likely to expand in the years to come – but the FSA must be consulted before final plans are made.

Details

Balance Sheet, vol. 8 no. 3
Type: Research Article
ISSN: 0965-7967

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Article
Publication date: 25 April 2019

Gabriele Hofinger Jünge, Erlend Alfnes, Kristina Kjersem and Bjorn Andersen

The purpose of this paper is to empirically investigate an effective project management practice focusing on planning and control. By doing so, it contributes to the debate on…

2339

Abstract

Purpose

The purpose of this paper is to empirically investigate an effective project management practice focusing on planning and control. By doing so, it contributes to the debate on rethinking traditional project management practices and accentuates the need for adjustments based on the project context.

Design/methodology/approach

This paper extends the project management theory by proposing a lean project planning (LPP) and control framework, developed and tested in collaboration with ten engineer-to-order (ETO) companies. By following a design science research approach, elements from lean thinking and current project planning and control practices are combined into a maturity model (MM).

Findings

ETO project characteristics are identified, and their implications for planning and control are discussed. Nine enablers that transform current project planning and control approaches into a lean approach are defined, allowing the analysis of the underlying complexity of planning and controlling ETO projects and thus facilitating the determination of the actions required to improve project performance.

Research limitations/implications

Once fully embedded in an organization, the presented MM can provide a safe framework for self-criticism and can be used to conduct self-assessments without the need for an external facilitator. Thus, this paper is of particular interest to practicing project managers who aim to implement LPP and control.

Originality/value

To the authors’ best knowledge, this paper is the first to empirically examine the journey toward LPP and control from a MM perspective. This research attempts to describe the enablers of LPP and control.

Details

International Journal of Managing Projects in Business, vol. 12 no. 4
Type: Research Article
ISSN: 1753-8378

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Book part
Publication date: 30 November 2018

Jon-Arild Johannessen

Abstract

Details

Knowledge Management as a Strategic Asset
Type: Book
ISBN: 978-1-78769-662-4

1 – 10 of over 9000
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